London, 9 January 2017 Scalable Capital, the European digital investment manager, today announced that it has reached the milestone of £100m in assets under management (AuM). This milestone, reached in under 12 months, positions Scalable Capital as one of the fastest growing digital investment managers in Europe and underlines the strong demand from clients for sophisticated digital investment management products based on risk management.
“We are delighted to have convinced so many clients about the benefits of Scalable Capital and our risk management technology within the course of just one year. Reaching this milestone so quickly underlines the trust our clients put into us. Our growth story is just getting started, and we look forward to more success in 2017 as we build on strong momentum in the UK and our market-leading offering in Germany”, says Adam French, co-founder of Scalable Capital and CEO of its UK business.
Scalable Capital’s typical clients have a strong educational background, with more than 90 percent having an academic degree. The average age is 42 years, the biggest age group are 30 to 40 year olds. Around two thirds of its clients have a background in economics, technology or engineering. At 20 percent of all clients, bankers are the largest customer group. “The majority of our clients work with data, formulas or software on a daily basis. They understand the quality and cost benefits of a technology-driven investment approach”, adds Dr. Ella Rabener, CMO and UK co-founder of Scalable Capital.
New clients often invest an initial five-digit amount. “Within four to five months they have typically gained enough trust to already double their investment amount”, mentions Adam French. The company also manages several larger portfolios. Around 20 percent of its total assets under management come from portfolios of more than €500,000 (£418,000); more than 50 percent of portfolios exceed a size of €100,000 (£84,000). The average portfolio size is currently at €42,000 (£35,000), with more than half of clients making use of a monthly savings plan with an average payment of €500 (£420).
“Our rapid growth shows that it is possible to convince savers to invest more of their savings in the capital markets. Using modern technology, providing full transparency about downside risks and offering lower fees allows us to convince our clients to move away from cash savings to investment accounts. Against the background of the growing pension gap in the UK, this is a welcome and required behavioural shift, and we’re proud to be able to help our clients to be better prepared for their retirement”, adds Dr. Ella Rabener.
More than 80 percent of its clients now use Scalable Capital’s mobile apps, which are available for iOS as well as Android devices, demonstrating how investors are quickly bypassing internet-based services in favour of investment management services that are available on their smartphones. Clients can use the apps to check their portfolio performance in real-time, as well as the current portfolio allocation and all transactions made. The apps also provide full transparency on all charges.
Scalable Capital has fundamentally changed investing by using technology at the heart of its service. Unlike other offerings, Scalable Capital uses a technology-driven, data-led investment approach to deliver three key customer outcomes.
Built by a team of 45 experts spanning the financial, technology and academic worlds, Scalable Capital has created a service, which not only makes investment management cheaper, more accessible and more convenient, but better as well. All by using technology at every step of the process.
The UK team consists of Adam French (formerly Executive Director of Goldman Sachs’s Trading Division); Simon Miller (formerly Vice President at Barclays Capital) and Dr. Ella Rabener (formerly Founder and CEO of Westwing Russia and Associate Partner at McKinsey & Company).
Its unique risk management technology was developed in close collaboration with Professor Dr. Stefan Mittnik, Director of the Chair of Financial Econometrics and Director of the Center for Quantitative Risk Analysis at the Ludwig Maximilians University in Munich.